• Bittensor price rose to highs of $207 amid Upbit’s listing announcement.
• However, buyers retreated and saw TAO touch lows of $179.
• The daily chart signals a potential bullish move, and $300 could be the next target.

Bittensor (TAO) has retested the $200 mark, reaching intraday highs of $207 in early trading on Monday as top cryptocurrencies look to hold key levels.

While the TAO price made gains in early trading, it has fluctuated heavily in the past hours, with the volatility coming amid a major exchange listing and broader market weakness.

Bittensor pares gains as Upbit lists TAO pairs

At the time of writing, TAO traded around $185, slightly off intraday highs and about 2% down in the past 24 hours.

The latest uptick and subsequent sharp decline align with the listing announcement from South Korea’s leading cryptocurrency exchange, Upbit.

신규 디지털 자산 비트텐서(TAO) 거래지원 안내

✅ 지원 마켓: KRW, BTC, USDT 마켓
📅 거래지원 개시 시점 : 2026-02-16 16:00 KST 예정

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🔗공지 바로가기:https://t.co/2Zre01hLuM#Upbit #TAO@opentensor pic.twitter.com/3LsILJZxU5

— Upbit Korea (@Official_Upbit) February 16, 2026

The exchange has added TAO pairs on its spot trading platform, a development that sparked immediate price action.

According to Upbit, traders can now access TAO/KRW, TAO/BTC, and TAO/USDT trading pairs as of Feb.16, which is a notable move set to bolster accessibility for TAO across one of Asia’s largest crypto markets.

Localized demand has often seen tokens listed on Korean exchanges post sharp gains, and that’s what TAO experienced.

However, amid profit taking, which has coincided with a 51% uptick in daily volume, prices have revisited support at $179.

Can Bittensor hold onto momentum?

Beyond the Upbit catalyst, Bittensor’s recent price rally from lows of $145 ties closely to a recent pivotal leadership shift.

This is because Jacob Steeves, known as “const,” announced he had stepped down as CEO of the OpenTensor Foundation, marking a key transition to a “headless” protocol free from centralized control.

Steeves’ announcement amplified decentralization sentiment among investors, positioning Bittensor as a resilient AI infrastructure play.

With dynamic TAO upgrades and subnet competition already live, the protocol now operates as a self-sustaining ecosystem.

Grayscale has also highlighted potential institutional interest in the token, particularly with its TAO ETP filing.

Bittensor price prediction: more pain or $300 next?

The cryptocurrency market’s struggles have led to most altcoins tracking losses over the past several months.

Bittensor price mirrors this outlook, and with Bitcoin constrained around $70,000, sentiment remains largely bearish.

Despite this, can TAO break towards the $300 mark?

The daily chart paints a slightly bullish picture, given the RSI and MACD indicators.

Bulls can solidify control near $180 and look to reclaim the critical $200 level.

Such a breakout from the descending channel could allow buyers to target the 50-day moving average and swing highs of $240.

From here, the next target of $300 would come into view.

However, failure to successfully reclaim $200 risks a retest of demand zones seen in recent months.

The area around $144 could mark a key short-term support level.

Momentum is rotating aggressively within the meme coin sector, with select names breaking structure and attracting speculative inflows. 

Several tokens are pressing into key technical inflection points, where confirmation could unlock continuation moves. BeInCrypto has analysed three such meme coins that the investors should watch in the third week of February.

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Pippin (PIPPIN)

PIPPIN has gone vertical, rallying by 142% in the last seven days and trading at $0.690 at the time of writing. It’s currently the best performer in the meme coin space this week. Structurally, price has broken out of the descending broadening wedge, a setup that typically precedes high-volatility expansion if confirmed.

The pattern projects a target rally of roughly 221%. The key trigger level sits at $0.772, the current ATH. A decisive reclaim and hold above that level — turning resistance into support — would confirm the breakout and open the door for continuation. Even a conservative follow-through could see momentum carry price toward $1.000, with the technical projection extending toward $1.357.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

That said, risk management matters here. If the NVT ratio starts climbing while exchange inflows increase, it would suggest weakening on-chain activity relative to valuation — a classic early warning sign. In that scenario, a retrace toward $0.514 becomes likely, with $0.372 as deeper structural support. A breakdown to those levels would invalidate the bullish setup and flip short-term momentum bearish.

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Mubarak (MUBARAK)

MUBARAK is changing hands at $0.0189, having reclaimed the $0.0174 (0.5 Fib) and is now pressing into $0.0189 (0.618 Fib) — a key decision level. Flipping this level into support suggests continuation toward higher retracement targets.

The MFI at 64.37 reflects strong buying pressure without flashing overbought conditions above 80.0. A strong daily close above $0.0189 would confirm bullish control and expose the meme coin $0.0210 (0.786 Fib) as the next upside objective, followed by $0.0237 (1.0 Fib).

On the downside, $0.0174 now acts as immediate support, with $0.0159 (0.382 Fib) and $0.0141 (0.236 Fib) below. A decisive daily close back under $0.0174 would weaken structure, while a breakdown through $0.0141 would invalidate the bullish setup.

BAN has emerged as one of the stronger-performing meme coins this week, climbing 30% to trade at $0.0987 at the time of writing. The rally pushed the price above the $0.0914 resistance level. This breakout reflects growing speculative interest and improved short-term trading momentum.

The altcoin is now eyeing a move above the $0.1000 psychological barrier. BAN’s correlation with Bitcoin stands at -0.27, indicating mild inverse movement. As Bitcoin trends lower, BAN may benefit from independent momentum. Sustained demand could drive the meme coin toward the $0.1094 resistance zone.

However, volatility remains elevated across the cryptocurrency market. If investors begin locking in profits, selling pressure could intensify quickly. A decline toward $0.0846 would signal weakening momentum. Losing that support may expose BAN to further downside near $0.0752, invalidating the current bullish outlook.

Polymarket has renamed its “Artemis II explodes?” market after outraged critics branded the company as “evil” and suggested that it could lead to the mission being intentionally sabotaged.

The prediction market first featured the controversial bet on January 20 as part of its series related to NASA’s Artemis II launch and it has so far pulled in over $81,000 in trading volume. 

Users on X, however, voiced their distaste after Citations Needed podcast host Adam Johnson claimed that markets “wagering on people dying should not be legal!”

Aerospace engineering professor Dr Chris Combs said, “The fact that there could now be a financial incentive to sabotage a crewed space mission is pretty dystopian.” 

Others noted the incentive and claimed that it could see “prediction markets turn into assassination markets.”

PIPPIN is now the 7th-largest meme coin.

While the broader cryptocurrency market has been struggling in the past weeks, the lesser-known meme coin pippin (PIPPIN) defied the bearish environment by posting an impressive rally.

Momentum around the asset has been building, with rising popularity fueling fresh price predictions and prompting traders to open interesting positions.

The Next Targets

Pippin exploded by 300% over the past two weeks, hitting a new all-time high of almost $0.76 on February 15. Currently, it trades at around $0.73 (per CoinGecko’s data), whereas its market capitalization stands at roughly $730 million. This makes it the 82nd-largest cryptocurrency and the 7th-biggest in the meme coin sector.

Its impressive performance has caused traders to open long positions in anticipation of further gains. X user Tryrex disclosed an entry at $0.695 with 7x leverage, a stop-loss placed at $0.6034, and aims to take profits if the valuation reaches $0.9755.

Shortly after, they made a slight amendment, moving the stop-loss to $0.6125 and “slightly increasing” the position. “That means I’m aiming for 3.4R. The target remains $0.97,” the trader added.

Crypto Tony said they are awaiting a test of the $0.78 level to see whether “the bulls can flip the high and continue, or if we then look for shorts.” For now, the analyst remains spot long on PIPPIN.

It is important to note that not all traders are so bullish. X user Nehal identified a potential short setup, describing the $0.75-$0.72 range as a good entry zone, with $0.63, $0.56, and $0.51 as the next targets, and placing a stop-loss at $0.81.

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Tread Carefully

People considering whether to deal with PIPPIN should be extremely cautious for several reasons. First, it is part of the meme coin sector, widely regarded as one of the most volatile areas of the cryptocurrency market. Tokens from that niche can rise by double and triple digits in a short period of time, but they may also collapse just as quickly to literally zero.

Moreover, many argue that PIPPIN’s use cases are questionable (to say the least), while its pump is primarily driven by pure speculation. X user van00sa believes that insiders hold more than 80% of the meme coin’s supply, which could enable them to manipulate its price.

“Last cycle, this thing hit $330M and crashed 90% to $8M. Now it’s back up double with even less fundamentals than before. Generational short imo. Just make sure your risk tolerance is high,” she warned.

Shual is also among the critics. The X user thinks PIPPIN’s rise is driven entirely by supply control and manipulation, and that the success of such coins (albeit short-lived in many cases) could damage the reputation of the entire crypto industry.

CryptoProcessing by CoinsPaid has published a case study detailing how Estonia-based proprietary trading firm PropShopTrader expanded globally by integrating crypto payments. The collaboration highlights how digital asset payments can reduce costs, lower chargeback risks, and improve conversion rates for online businesses.

Crypto payments are no longer a fringe experiment. For an increasing number of digital-first businesses, they are becoming a practical tool to reduce costs, improve conversion rates, and reach a global customer base that expects modern payment options. A recent case study from CryptoProcessing, the crypto payment gateway by CoinsPaid, shows how this shift works in practice through its collaboration with proprietary trading firm PropShopTrader.

Crypto payments are entering the mainstream

Merchant adoption of cryptocurrency payments has accelerated over the past few years. A joint survey conducted by PayPal and the National Cryptocurrency Association found that nearly 40% of merchants already accept crypto payments, while 84% expect crypto to become a common payment method within five years. Importantly, adoption is being driven by customers themselves: 88% of merchants reported that users have asked about paying with crypto.

This trend is reflected globally. Industry research estimates that tens of thousands of online merchants now support crypto payments, with stablecoins playing a central role thanks to their lower volatility and faster settlement times.

Against this backdrop, companies operating in fintech, trading, and digital services are increasingly reassessing their reliance on card-only payment models.

Why PropShopTrader looked beyond card payments

PropShopTrader is an Estonia-based proprietary trading firm that evaluates and funds traders from around the world. Before integrating crypto payments, the company relied exclusively on card transactions. While familiar and widely used, card payments brought several challenges: higher processing fees, exposure to chargebacks, and limited flexibility for a globally distributed, crypto-savvy audience.

“Integrating CryptoProcessing by CoinsPaid changed how we think about payments. We’ve reduced chargebacks, optimised fees, and expanded access to traders around the world. We especially value the ability to accept multiple cryptocurrencies while automatically converting everything to USDC. It gives us the flexibility of crypto with the stability we need to run our business confidently,” shared Ashley Kozak, Founder and Managing Partner at PropShopTrader.

Implementing CryptoProcessing

By integrating CryptoProcessing’s payment gateway, PropShopTrader has enabled users to pay with more than 20 cryptocurrencies, while the business itself can automatically convert incoming funds into USDC or fiat. This removes exposure to market volatility while preserving the benefits of blockchain-based payments.

Equally important is compliance. Operating within the EU regulatory framework, PropShopTrader required a solution with built-in AML monitoring, transaction screening, and transparent reporting. CryptoProcessing’s infrastructure provides these safeguards, allowing the company to expand its payment options without increasing regulatory or operational risk.

Measurable business results

The impact of crypto payments became visible shortly after launch. Around 7% of PropShopTrader’s clients began using cryptocurrency to fund their accounts, indicating clear demand from a segment that may have otherwise faced friction at checkout. At the same time, the company reported a reduction of approximately 3% in average transaction costs and an overall revenue increase of about 5%, driven by improved conversion and broader accessibility.

These figures highlight a key point often overlooked in discussions around crypto payments: adoption does not need to be universal to be meaningful. Even partial uptake can deliver measurable financial benefits.

Why CryptoProcessing resonates with businesses

CryptoProcessing’s appeal lies in its balance between innovation and practicality. Businesses gain access to a wide range of digital assets and blockchain rails, while still benefiting from instant settlements, treasury management tools, and regulatory safeguards. For companies serving international or digitally native audiences, this combination can translate directly into lower costs and higher customer satisfaction.

More broadly, crypto payments are increasingly seen as a strategic advantage rather than a speculative bet. As stablecoins become more integrated into mainstream payment flows — including support through platforms like Apple Pay, the gap between traditional and crypto payments continues to narrow.

A practical example of crypto in action

The PropShopTrader case illustrates how crypto payments can move beyond theory and hype. By working with CryptoProcessing, the company has addressed real operational pain points while opening the door to new customer segments. The result was not just a more modern checkout experience, but tangible improvements in cost efficiency and revenue.

As global commerce becomes increasingly digital and borderless, examples like this suggest that crypto payments are evolving into a core component of modern payment strategies — especially for businesses willing to meet their customers where they already are.

Capital is rotating into select mid-cap altcoins as momentum builds near critical technical levels. Several names are compressing just beneath record highs, while others are stabilizing after shallow pullbacks with trend structure still intact. 

Thus, BeInCrypto has analysed three such altcoins that could form new all-time highs in the third week of February.

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Kite (KITE)

KITE is among the closest altcoins to retest its recent all-time high of $0.242. The token is trading less than 17% below that peak. Strong short-term momentum has kept KITE within reach of record levels, reflecting sustained trader interest and speculative demand in the broader altcoin market.

The Chaikin Money Flow indicator shows a slight downtick but remains above the zero line. This suggests capital inflows are still present despite cooling momentum. Continued buying pressure could help KITE break above $0.242. A confirmed breakout may push the altcoin toward $0.270, establishing a new high.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

However, profit-taking remains a key risk near record levels. If investors begin exiting positions, downside pressure could increase quickly. A drop below the $0.207 support level would weaken the bullish structure. Further selling could drive KITE toward $0.163, invalidating the current upside thesis.

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Rain (RAIN)

Another altcoin poised for new all-time highs in the coming week is Rain. Despite a recent price dip, the altcoin has preserved a bullish structure. The Ichimoku Cloud indicator continues to show supportive momentum, signaling that trend strength remains intact within the broader cryptocurrency market.

Sustained buying pressure could drive RAIN back toward its $0.0110 all-time high. The token currently trades about 12.5% below that level. A decisive breakout above $0.0110 would confirm continued strength. That move could push RAIN toward $0.0113, establishing a fresh record high.

However, technical momentum must remain stable to support further upside. If buying interest weakens, downside risk could increase. A decline toward the $0.0097 support level would signal fading bullish control. Breaking that level would invalidate the current bullish thesis and shift sentiment bearish.

Stable (STABLE)

STABLE has emerged as one of the stronger-performing altcoins this week, advancing 45% over the period. The token now trades roughly 21% below its all-time high of $0.0325. Sustained momentum has strengthened bullish sentiment, positioning STABLE within reach of record price levels.

The Money Flow Index remains above the neutral 50.0 mark, signaling active buying pressure. Positive capital inflows suggest demand continues to outpace supply. If accumulation persists, STABLE could break above $0.0325. A confirmed breakout may extend gains toward $0.0368, establishing a new all-time high.

However, short-term holders may begin locking in profits after the recent rally. Increased selling activity could weaken upward momentum. A pullback toward $0.0225 would indicate cooling demand. Further downside toward $0.0189 would invalidate the current bullish outlook.

Nexo is set to relaunch its digital asset services and crypto exchange platform in the United States on Monday, reviving a business footprint it abandoned more than three years ago amid a regulatory climate that proved inhospitable for crypto firms. The reboot is framed around clearer rules for digital assets in the U.S. and relies on a partnership-driven model designed to meet licensing and compliance benchmarks while offering a mix of yield programs, a spot trading venue, crypto-backed credit facilities, and a loyalty program for U.S. customers, according to Eleonor Genova, Nexo’s head of communications.

Key takeaways

• Nexo plans a U.S. relaunch anchored in Florida, with a management team to be announced, and a trading backbone provided by Bakkt to serve institutional-grade trading needs.
• The new structure includes services delivered through licensed U.S. partners, with certain activities supported by a third-party SEC-registered investment adviser to ensure compliance under U.S. securities laws.
• The move marks a notable reversal after Nexo exited the U.S. market in December 2022 due to what it described as a hostile regulatory posture toward blockchain firms during the Gary Gensler era.
• Regulatory dynamics in Washington—framing a potential pathway for crypto clarity—have evolved, with debates over framework bills like the CLARITY Act and ongoing White House-brokered discussions on stablecoins and market structure.
• The U.S. relaunch follows high-profile political events and promises to reintroduce crypto offerings into a market where policy signals have gradually tilted toward clearer, if still evolving, compliance standards. An April 2025 event featuring Donald Trump Jr. highlighted the strategic attention around crypto in U.S. political discourse.

Tickers mentioned: N/A

Sentiment: Neutral

Market context: The re-entry arrives as Washington weighs a regulatory framework for crypto markets, with the CLARITY Act gaining traction but facing political hurdles. A White House-facilitated meeting between crypto and banking representatives aimed at aligning stablecoin provisions underscores a broader push for market clarity that could shape how platforms operate going forward.

Why it matters

The renewal of Nexo’s U.S. footprint underscores a broader industry trend: companies that paused or scaled back operations a few years ago are testing the waters again as policymakers signal a willingness to formalize crypto rules. Florida’s selection as the operational base aligns with state-friendly licensing environments and a growing focus on local compliance infrastructure, a shift that could influence other platforms evaluating U.S. re-entry.

Crucially, Nexo’s architecture emphasizes regulated partnerships rather than a single, fully in-house regime. The company has articulated that certain services will be conducted through licensed U.S. providers and that advisory services will be furnished by an SEC-registered adviser in accordance with applicable securities laws. This approach signals a deliberate effort to align crypto offerings with traditional financial-market standards while preserving access to yield programs and crypto-backed credit tools that drew users to its platform in the first place. The move also reflects a broader industry trend toward asset custody, insurance considerations, and compliance-led product design as firms seek to reassure investors and regulators alike.

The regulatory backdrop remains nuanced. While Washington has advanced discussions around crypto market structure and clarity, the Senate has yet to assemble what it regards as sufficient bipartisan support to move ahead with major legislation. In the meantime, industry participants point to ongoing regulatory dialogues and evolving enforcement expectations as critical signals for strategic planning. The White House has described the need for compromise on crypto policy and has supported efforts to pass a comprehensive framework before midterm elections, arguing that stable and well-defined rules are essential for investor protection and market integrity. In parallel, a productive but unresolved dialogue between crypto and banking stakeholders on stablecoins highlights the complexity of reconciling innovation with consumer safeguards.

Nexo’s earlier exit in 2022 was framed by the firm as a response to an environment where “the U.S. refuses to provide a path forward for enabling blockchain businesses,” despite assurances from industry participants that constructs could be built to satisfy regulatory expectations. The company subsequently faced legal and regulatory actions tied to its Crypto Earn product, including a $45 million settlement with the SEC over unregistered interest-bearing crypto rewards and an additional $22.5 million multi-state securities settlement related to the earn program. These actions culminated in the shuttering of Crypto Earn for U.S. users shortly after the settlements were announced, illustrating the kind of enforcement risk that the new U.S. launch seeks to mitigate through governance, licensing, and robust advisory relationships.

The newly announced U.S. relaunch, with its emphasis on compliant, licensed pathways and a curated ecosystem of services, reflects both a reputational recalibration and a pragmatic strategy to re-enter a market that remains vital for global retail and institutional participants alike. The narrative around Nexo’s return is also part of a broader conversation about how crypto firms can navigate federal and state regimes in a way that balances innovation with accountability, a topic that has shaped many of the industry’s recent regulatory dialogues and enforcement actions.

“Nexo’s US offering is structured through partnerships with appropriately licensed US service providers. Certain services are made available via a third-party Securities and Exchange Commission-registered (SEC) investment adviser, which provides advisory services under applicable US securities laws.”

The Florida-based relaunch underscores a strategic intent to localize operations while leveraging external compliance rails. Bakkt’s involvement as the trading infrastructure provider will bring institutional-grade liquidity and risk controls to a platform that seeks to appeal to both retail enthusiasts and professional traders. The arrangement with a registered adviser is designed to ensure that advisory services align with U.S. securities rules, potentially expanding the scope of products that can be offered without triggering unregistered security concerns. These elements collectively indicate a cautious but purpose-driven path back into a market that remains critical to the broader crypto ecosystem’s growth curve.

What to watch next

• The timing and terms of the Florida-based management team’s appointment and whether any licenses or registrations are filed or announced publicly.
• The go-live timeline for the Bakkt-powered trading interface and the rollout of yield, lending, and loyalty products in a compliant framework.
• Formalization of the SEC-registered adviser relationship and the exact product mix that will be offered to U.S. customers.
• Regulatory milestones tied to U.S. crypto policy, including any movement on the CLARITY Act or related market-structure discussions.

Sources & verification

• Nexo’s official communications on its gradual departure from the United States and the rationale cited for exiting in 2022.
• Information on the 2023 SEC settlement and related multi-state securities settlements tied to the Crypto Earn program.
• California Department of Financial Protection & Innovation (DFPI) fine related to the firm’s lending activities.
• Ongoing policy discussions in Washington around crypto market structure, including the CLARITY Act and White House–brokered talks on stablecoins.
• The April 2025 exclusive event featuring Donald Trump Jr. announcing or signaling the U.S. re-entry, as reported in accompanying coverage of Nexo’s re-entry plan.

Nexo’s U.S. relaunch signals a new phase for compliant crypto services

The relaunch marks a deliberate pivot toward a compliance-first model designed to align with U.S. securities laws and state licensing requirements while preserving access to services that attracted users in previous years. By anchoring operations in Florida and building a framework around licensed partners and a registered adviser, Nexo aims to reduce the kind of regulatory friction that curtailed its U.S. ambitions in the past. The arrangement with Bakkt signals a preference for institutional-grade infrastructure, which may help the platform weather a market characterized by heightened scrutiny and cautious capital deployment.

In the broader context, the resumption of U.S. activities by Nexo sits at the intersection of regulatory caution and market demand. The sector continues to push for clarity on what constitutes a security versus a commodity, how custody should be structured, and which products can be offered to everyday investors without triggering sweeping enforcement actions. As policymakers weigh policy options, the crypto industry remains compelled to demonstrate that it can operate within a well-defined regulatory perimeter while continuing to innovate—whether through yield-based programs, lending products, or a diversified trading environment.

Nexo is set to return to the U.S. market, saying it has officially rolled-out a suite of digital asset offerings and trading infrastructure from the U.S.-based Bakkt.

The digital asset wealth platform withdrew from the U.S. in late 2022 after what it called a “dead end” in negotiations with state and federal regulators over its Earn Interest Product. The company said in 2022 it could no longer operate in an “impossible environment” following multiple enforcement actions, including from California and New York. However, in April 2025, it announced it would return, adding had $11 billion in assets under management.

The company’s U.S. product lineup includes fixed and flexible yield programs, an integrated crypto exchange, and crypto-backed credit lines. These services are offered through a compliant framework designed to support portfolio management and liquidity access for retail and institutional clients. Fiat on- and off-ramps are available via automated clearing house (ACH) and wire transfers.

The re-entry to the U.S. follows what the company called a “period of deliberate recalibration,” signaling a longer-term commitment to regulated markets. Nexo says the move also follows its “ongoing global expansion.” Nexo cited $371 billion in global transactions processed to date, in Monday’s statement.

The firm’s broader expansion includes the acquisition of Argentina’s Buenbit and sponsorships with the ATP Dallas Open and the Audi Revolut F1 Team.

Harvard Management Company (HMC), the investment arm of Harvard University’s endowment, reduced its stake in a major Bitcoin exchange-traded fund (ETF) by roughly 21 %.

Harvard rotates into ETH as Bitcoin ETF holdings shrink 21%

Simultaneously, HMC established a new multimillion-dollar position in an Ethereum (ETH) ETF, according to a quarterly 13F filing with the U.S. Securities and Exchange Commission.

The filing, which discloses Harvard’s U.S.-listed equity holdings as of December 31, 2025, shows that the endowment cut close to 1.5 million shares of the iShares Bitcoin Trust (IBIT) compared with the previous quarter.

Despite this reduction, Bitcoin (BTC) remains HMC’s largest publicly disclosed holding with a reported market value of approximately $265.8 million at year-end.

In a notable strategic move, Harvard initiated a new position in the iShares Ethereum Trust (ETHA) acquiring about 3.87 million shares valued at an estimated $86.8 million during the same period. This represents the university’s first publicly disclosed allocation into an Ether-linked ETF.

While the filing primarily highlights the adjustment in digital-asset ETFs, it also shows broader shifts in HMC’s publicly reported equity holdings, including both increases and reductions across major tech and industrial names. However, the crypto positions, even after trimming, remain among the most significant individual line items disclosed.

Harvard University’s $56.9 billion endowment made its first foray into ether ETH$1,978.09 last quarter, even as it scaled back its exposure to bitcoin BTC$68,770.50.

According to an SEC filing, the Harvard Management Company (HMC) bought almost 3.9 million shares of BlackRock’s iShares Ethereum Trust (ETHA), valued at around $86.8 million.

The company also reduced its stake in the iShares Bitcoin Trust (IBIT) by 21%, selling roughly 1.5 million shares. The bitcoin exchange-traded fund remains Harvard’s largest publicly disclosed holding at $265.8 million.

The shift comes after the price of bitcoin dropped from an all-time high of around $125,000 in October to close the quarter just below $90,000.

The move, however, may have less to do with sentiment and more to do with market dynamics, according to Andy Constan, founder and chief investment officer at Damped Spring Advisors.

The sale could reflect the unwinding of a trade that meant to capitalize on bitcoin treasury companies trading at premiums to the value of their BTC holdings, as measured by the multiple of net asset value, or mNAV, which compares enterprise value to bitcoin value.

When bitcoin’s price was booming, digital asset treasury (DAT) firms like Strategy (MSTR) traded at high premiums to the value of the bitcoin in their treasuries. MSTR, for example, at one point traded near 2.9 mNAV, meaning investors buying the shares were paying around $2.9 to own $1 of BTC.

That premium reflects not only the underlying cash-generating business, but also the company’s potential to keep accumulating bitcoin. Still, various investors bet on that mNAV gap narrowing. They held bitcoin indirectly through IBIT and shorted the shares of Strategy and similar digital asset treasury (DAT) companies.

Then the unwind took place, according to Constan. As the price of bitcoin plunged, so did that of DAT shares. Strategy, for example, now trades at 1.2 mNAV. These traders may also be rebalancing their portfolios, as bitcoin’s price nearly doubled last year despite the drawdown, suggesting it could be above the institution’s desired portfolio allocation, he wrote on X.

Data from 13F filings with the SEC gathered by Todd Schneider at 13.info backs these points. It shows that institutions reported owning 230 million IBIT shares in the fourth quarter, down from 417 million in the third.

Harvard also boosted investments in chipmakers Broadcom and TSMC, as well as in Google’s parent company Alphabet and railroad operator Union Pacific, while trimming stakes in Amazon, Microsoft and Nvidia.